Natural Gas Prices Drop 3.17% amid Warm Winter, Rising Inventories

Natural gas prices dropped more than 30% this week after news surfaced about the oversupply of natural gas.

Natural gas traded on the New York Mercantile Exchange at $1.629 after recording $2.52 on February 9.  Last year, natural gas traded $3.68 on NYMEX. 

NATURAL GAS 

$1.558  -3.17%

Natural gas demand is historically has been driven by colder weather in the winter months.

Natural gas prices in the United States have fallen to their lowest level in nearly 30 years, due to a warm winter and high amounts of gas production.

The Financial Times reported that temperatures this winter in the United States, the season in which energy consumption for heating homes rises, are approaching the highest since 1950.

It added that in parallel, gas production in the United States reached a record level of 105 billion cubic meters in December 2023.

The newspaper explained that this combination of factors led to a decline in natural gas prices, which recorded a 50% collapse in mid-January.